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##### Question 1 What is the net present value of the...

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Question 1 What is the net present value of the following cash flows? Assume an interest rate of 3.59% Year CF 0 -$12,889 1 $7,875 2 $5,366 3 $7,441 Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box. Question 2 In its most recent financial statements, ABC reported $57,648 of net income and $640,616 of retained earnings. The previous retained earnings were $787,805. How much in dividends was paid to shareholders during the year? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. Your firm has the following balance sheet statement items: total current liabilities of $325,000; total assets of $3,655,000; fixed and other assets of $1,770,000; and long-term debt of $200,000. What is the amount of the firm?s net working capital? $1,560,000 $1,885,000 $1,080,000 $325,000 $1,685,000 A project has the following cash flows. What is the internal rate of return? Year 0 1 2 3 Cash flow -$121,000 68,150 $42,200 $39,100 13.47% 13.85% 14.82% 14.39% 12.71% Question 5 ABC Company offers a perpetuity which pays annual payments of $17,778. This contract sells for $253,738 today. What is the interest rate? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Question 6 A firm has a return on equity of 13.1 percent, a net profit margin of 8.4 percent, and total equity of $615.5. What is the net income? Question 7 Consider a taxable bond with a yield of 12.9% and a tax-exempt municipal bond with a yield of 6.7%. At what tax rate would you be indifferent between the two bonds? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Question 8 What is the effective rate of 9% compounded monthly? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Question 9 ABC Company has a debt-equity ratio of 0.7. What is the debt ratio? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Question 10 Calculate the project's IRR. Do not write the '%' sign in your answer. If the answer is 12.45%, you will enter 12.45 Year 0 1 2 3 4 Cash flows ?$1,050 $400 $400 $400 $400 Question 11 Calculate the NPV of a project that requires investment of 872 and provides the cashflows of 368, 201, 275, 326 in the next 4 years. The relevant discount rate is 11%. (All numbers are in dollars) Question 12 Find the payback period for a project that requires investment of $31 and returns $12 every years for 7 years. Question 13 How many years will it take to triple your money at 14% compounded monthly? Enter your answer rounded off to TWO decimal points. Do not enter "years" in the answer box. Suppose an investment offers to double your money in 31 years. What annual rate of return are you being offered if interest is compounded semi-annually? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. ABC Company lists total assets of $4,483, current liabilities of $244 , long-term debt of $865 , and 203 shares of common stock. If the market price per share is $72, what is the market-to-book ratio? Enter your answer rounded off to two decimal points. ABC Company has total assets of $869,997. There are 41,756 shares outstanding with a market value of $32 per share. If the net profit margin is 6.4% and the total asset turnover is 1.6, what is the price/earnings (P/E) ratio? Enter your answer rounded off to two decimal points. Suppose you take a mortgage for $135,908 for 16 years with annual payments. If the annual interest rate is 3.3%, calculate the total interest amount paid over the life of the loan. That is, calculate the total interest paid in 16 years. Hint: Use the amortization table. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. Question 18 Suppose you invest $32,408. If the interest rate is 12% compounded quarterly for the first 10 years and 3% compounded monthly for the next 5 years, what is the future value after 15 years? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Paper#4053 | Written in 18-Jul-2015

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